Following up my comment from yesterday that minority stakes in firms are a bit more common on this side of the Atlantic, there’s another example that growth capital deals are alive and well in Europe as the firm formerly known as Investors in Industry (that’s 3i for everyone following along) is leading a 200M euro investment in pan-European medical diagnostics firm, Labco. 3i is in for 140M euros, with TCR Capital, Natixis Investment Partners, and CIC Finance picking up the remaining 60M euros. The deal furthers 3i’s emphasis on healthcare which in Europe is run by Denis Ribon (who is a 1999 graduate of HEC’s MBA program, i.e. he’s one of the good guys!), who will assume a seat on Labco’s board.
As those European businesses that have emerged as “national champions” look to expand beyond their home markets and enter the global playing field, growth capital deals will become ever more essential in enabling those firms to become capable of doing so with the proper resources and know-how. Not only do the firms that are invested in receive much-needed capital but they also gain the value added that the private equity firms bring in terms of network and experience in the era of mondialisation. Definitely a niche of the private equity spectrum to place close attention to!